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Some of us thought it might never come. YouTube for iOS has finally been updated for the four-inch display of the iPhone 5 and iPod touch 5G to take advantage of every pixel without any black letter-boxing at the top and bottom of the screen.

The additional pixels in the update are important, because now videos can be viewed using the full resolution of the screen. It also makes it easier to see more content at a glance in your video feed.

The update also includes optimization for the full display of the iPad:

The update also adds the ability to stream videos over AirPlay, so you can see them on a larger screen, and the ability to add or remove videos from your playlists. The logo can now be tapped to view your guide of channels, and links can now be tapped on from video descriptions, as well. Additional support for VoiceOver makes the application even more usable in terms of accessibility.

Unfortunately, the update doesn’t appear to give us the option to select the video quality manually. This was a feature that was demanded in bulk from the user reviews of the application because of the laggy video response, but hopefully it comes in the future.

Existing users will find the update from the Updates tab in the App Store. New users can download the updated YouTube application for free from this link.

There are a ton of YouTube app alternatives in case you guys didn't know...Personally, I use McTube.

Same here! BLows the youtube app out of the water! Its always HD quality even over cellular. Also with the update yesterday you can play in background as well. The new youtube app is disappointing even after this update.

Without the app, I could watch any YouTube video on my iPad by switching to the full / desktop site instead of the tablet / mobile site. I had to delete the app because I couldn't watch music videos and such that were flagged to disallow mobile viewing.

At home, the iPad has replaced most of the web browsing activity I used to perform on my desktop computer. It's really stupid that YouTube still restricts it from watching a significant portion of YouTube content.